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Unformatted text preview: PRACTICE PROBLEMS: Econ 1, WINTER 2008 (1) Cost and Revenue Curves Graph A Graph B Graph C Graph D Graph E Instructions: Mark each statement true or false. In the space following the statement state briefly why you mark it as you do. 1. The graph A producer is operating under competitive conditions in the short run and losing money. 2. Unless some adjustments take place, the graph A producer will not operate in the long run. 3. The graph B producer is producing under monopolistic conditions and is losing money. 4. The graph C producer is operating under monopolistic conditions. 5. The graph C producer is operating at a profitable stage of operation. 6. The graph D producer is producing under monopolistic conditions and is losing money. 7. The graph D producer is covering all fixed and variable costs. 8. The graph E producer is in the long-run equilibrium position. 9. The graph E producer is operating under competitive conditions. 10. The graph E producer is losing money. Instructions: Mark each statement true or false. In the space following the statement state briefly why you mark it as you do. 1. The graph A producer is operating under competitive conditions in the short run and losing money. 2. Unless some adjustments take place, the graph A producer will not operate in the long run. 3. The graph B producer is producing under monopolistic conditions and is losing money. 4. The graph C producer is operating under monopolistic conditions. 5. The graph C producer is operating at a profitable stage of operation. 6. The graph D producer is producing under monopolistic conditions and is losing money....
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